Dive Brief:
- UPS has shifted to a new global operating model that the logistics giant says will enable it "to serve customers with greater consistency, agility, and scale," according to a news release Monday.
- The company will standardize key operational processes globally while keeping flexibility to meet the specific needs of local markets, which will help UPS "better leverage the power of its worldwide network," per the release. UPS did not provide information on the specific processes being standardized.
- UPS has appointed Nando Cesarone to lead the revamped model as EVP and chief global operations officer. Cesarone, previously president of UPS' U.S. business, will now oversee the company's global air network and gateways, surface transportation, and building and engineering operations, among other functions.
Dive Insight:
The new operating model aids in UPS' push to evolve from a small package carrier to an integrated logistics solutions provider, according to the release.
"At UPS, we intend to leverage the full power of our global network," CEO Carol Tomé said in the announcement. "By combining global standardization with local market responsiveness, we will create greater efficiency, enhance customer experience, and strengthen our ability to grow around the world."
UPS is looking to make better use of its worldwide network following a revamp in its business strategy. In June, UPS wrapped up its Amazon volume reduction initiative, building upon efforts to reduce its reliance on e-commerce volume and pursue more profitable customer segments like healthcare.
The carrier has been highlighting enhanced capabilities internationally in recent months amid this shift in strategy. UPS is in the thick of a $2 billion investment plan across its international, healthcare and Supply Chain Solutions businesses, which includes setting up new hubs in the Philippines and Hong Kong International Airport. The company has also opened and upgraded several temperature-controlled facilities in various markets and launched time-definite services for heavy air freight to and from Mexico.
In addition to Cesarone's new role, UPS announced other executive leadership changes which took effect Tuesday:
- Wilfredo Ramos has been named UPS' EVP and chief international, healthcare and Supply Chain Solutions officer. The former leader of the company's Asia Pacific and brokerage businesses succeeds Kate Gutmann, who is retiring for personal family reasons.
- Matt Guffey has been appointed EVP and chief U.S. domestic officer, overseeing UPS' U.S. business including Roadie, Happy Returns and The UPS Stores. Guffey previously served as EVP and chief commercial and strategy officer.
- UPS has created a new role of EVP and chief global commercial strategy officer, with a search underway to find the leader who will be responsible for global strategy, marketing and communications, product management and pricing.
